Amid the turmoil in cryptocurrency markets, news is coming in that Biden is preparing to draft regulatory guidelines for bitcoin.
A source familiar with the matter told Charlie Gasparino at FOX Business that the forthcoming regulation, which will focus on cryptocurrency infrastructure and taxation, is being led by Treasury Secretary Janet Yellen and her deputy, Wally Adeyemo.
Gary Gensler, the newly appointed head of the US Securities and Exchange Commission (SEC), is reportedly awaiting instructions from the Treasury Department to develop a comprehensive regulatory framework for bitcoin and other cryptocurrencies.
Although it has not been clarified when the regulation will be published, the US government has already proposed an anti-money laundering rule that would require cryptocurrency users to go through a Know-Your-Customer (KYC) process if they make transactions over $3.000.
The move has been criticised by many players in the cryptocurrency industry, including Kraken CEO Jesse Powell, who has said the initiative runs counter to the pseudonym nature of cryptocurrencies.
Powell said that the US government’s move could be the “tip of the iceberg”, as he believes tougher regulations are under way. He also said that Kraken may be forced to move its headquarters from the US to another country.
In February, the cryptocurrency with the largest market capitalisation received some catastrophic setbacks from Yellen, who pushed its price down.
Although she claims she likes the dynamics of bitcoin, she believes it is mainly used by criminals to carry out illegal activities, including terrorist financing and money laundering.
Commenting on the use of bitcoin in payments, she says it is an extremely lucrative and inefficient method of trading due to its high energy consumption.